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Abbott tells business to push for reform

Peter Trute

Prime Minister Tony Abbott is calling on the business community to speak out in support of economic reforms.

In a speech to the opening of the B20 business leaders summit in Sydney on Thursday, Mr Abbott said the private sector had to lead the way on economic growth rather than having a "government knows best" approach.

"The lesson of previous reforms here in Australia and elsewhere is that business must be an advocate in the court of public opinion for policies that encourage trade, strengthen the economy and adhere to sound business principles," Mr Abbott said.

"Business can't legitimately ask government to introduce policies that it's not prepared to argue for in public as well as in private."

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Mr Abbott, who is chairing this year's G20 government leaders' summit in Australia, said business, not government was the primary driver of growth.

He said the government was "leading by example" to make life easier for businesses to invest and employ, citing the scrapping of the carbon tax - which passed parliament on Thursday - and the mining tax among other measures.

Mr Abbott also mentioned his contentious paid parental leave scheme and changes to unemployment benefits for under-30s as examples of preparing workforces for future challenges.

Mr Abbott also said trade liberalisation had to be pursued, even if nations had to make concessions without receiving something in return.

"We need to lose the mercantilist view that a concession in trade negotiations can only be granted for something given in return," he said.

"Trade liberalisation is worth doing, even unilaterally, because free trade means more efficiency, more efficiency means more wealth, more wealth means more jobs."